Stock Pick

  • 3 strong ASX dividend shares to buy right now

    word dividends on blue stylised background, dividend shares

    Later today the Reserve Bank will hold its monetary policy meeting for June. According to the latest cash rate futures, the market is currently pricing in a 45% probability of a rate cut to zero.

    While I’m not convinced rates will go lower again, I do expect them to stay at these lowly levels for at least a couple of years.

    In light of this, I continue to believe that investors should look for a source of income from the share market instead of term deposits or savings accounts.

    But which shares should you buy? Three top ASX dividend shares I would buy for income are listed below:

    Coles Group Ltd (ASX: COL)

    I think this supermarket operator would be a good option for income investors. This is because I believe Coles is well-placed to deliver solid earnings growth over the next decade thanks to its refreshed strategy and defensive business. And with Coles intending to pay out upwards of 90% of its earnings to shareholders, this bodes well for its dividends in the future. At present I estimate that its shares offer a fully franked 3.9% FY 2021 dividend.

    VanEck Vectors Australian Banks ETF (ASX: MVB)

    I think the big four banks are all trading at attractive levels for investors. But if you’re not sure which bank to buy ahead of the others, then you could just buy a piece of them all. You can do this by buying the VanEck Vectors Australian Banks ETF. You’ll also get a slice of the regional banks and investment bank Macquarie Group Ltd (ASX: MQG) as well. I estimate that its units will provide investors with a partially franked yield of at least 5% in FY 2021.

    Wesfarmers Ltd (ASX: WES)

    A final dividend share I would buy is Wesfarmers. I think the conglomerate is capable of growing its earnings and dividends at a solid rate over the next decade. This is thanks to the quality and growth potential of its portfolio of assets and potential earnings accretive acquisitions in the near future. Based on its last close price, I estimate that its shares offer a fully franked 3.6% FY 2021 dividend yield.

    And recommended below is a fourth dividend share which analysts love right now…

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 strong ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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  • Here’s How Much Investing $1,000 In Southwest Airlines Stock Back In 2010 Would Be Worth Today

    Here's How Much Investing $1,000 In Southwest Airlines Stock Back In 2010 Would Be Worth TodayInvestors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there's no question some big-name stocks did much better than others along the way.Southwest's Difficult DecadeOne underperformer of the last decade was U.S. airline Southwest Airlines Co (NYSE: LUV).The big news of the past decade for Southwest was its $3.2 billion acquisition of AirTran Airways. The merger was announced in September 2010 and added 25 additional destinations to Southwest's routes, including AirTran hub Atlanta, Georgia.The deal was ultimately approved by shareholders and regulators, and Southwest closed the deal on May 2, 2011.Southwest shares started the 2010s trading at around $11.18 but hit their decade low of $6.65 by late 2011. Southwest shares went on a tear in 2013 and 2014, eventually peaking at $48.99 in late 2015.The rally resumed in late 2016 when Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) took a new stake in Southwest. That momentum ultimately pushed the stock to its all-time high of $65.12 at the very end of 2017.2020 And BeyondFrom early 2017 to early 2020, Southwest shares traded mostly sideways in a range between $45 and $65 before the bottom fell out during the COVID-19 outbreak. In March, Southwest traded to a more than five-year low of $22.47 before bouncing back to around $34 today.Despite the bid 2020 hit, investors have still made decent returns in the popular airline stock over the past decade. In fact, $1,000 worth of Southwest stock in 2010 would be worth $2,940 today, assuming reinvested dividends.Looking ahead, analysts expect even more gains for Southwest in 2020. The average price target among the 17 analysts covering the stock is $38, suggesting 11.4% upside from current levels.Related Links:Here's How Much Investing ,000 In Royal Caribbean Stock Back In 2010 Would Be Worth TodayHere's How Much Investing 0 In Carnival Stock Back In 2010 Would Be Worth TodaySee more from Benzinga * Airline Stock Short Sellers Have Made A B Profit In 2020 * How Large Option Traders Are Playing Airlines Right Now * Delta, United Extend Loyalty Memberships For Another Year As Coronavirus Pummels Airlines(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • 5 things to watch on the ASX 200 on Tuesday

    On Monday the S&P/ASX 200 Index (ASX: XJO) overcame a weak start to the day to record a very strong gain. The benchmark index climbed 1.3% to 5,819.2 points.

    Will the market be able to build on this on Tuesday? Here are five things to watch:

    ASX 200 to push higher.

    The ASX 200 looks set to continue its positive form on Tuesday. According to the latest SPI futures, the benchmark index is poised to rise 11 points or 0.2% at the open. This follows a good start to the week on Wall Street. The Dow Jones rose 0.35%, the S&P 500 climbed 0.4%, and the Nasdaq index pushed 0.65% higher.

    Reserve Bank meeting.

    This afternoon the Reserve Bank will hold its latest monetary policy meeting. According to the latest cash rate futures, the market is currently pricing in a 45% probability of a rate cut to zero. On Friday the economics team at Westpac Banking Corp (ASX: WBC) revealed that they are not ruling out negative interest rates in Australia.

    Oil prices rise.

    Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise today after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price rose 0.2% to US$35.56 a barrel and the Brent crude oil price pushed 1.9% higher to US$38.55 a barrel.

    Gold price softens.

    Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the spot gold price softened overnight. According to CNBC, the spot gold price fell 0.1% to US$1,750.00 an ounce. Demand for safe haven assets weakened as equities stormed higher despite U.S. protests and U.S.-China tensions.

    Afterpay on watch.

    The Afterpay Ltd (ASX: APT) share price will be one to watch today when rival Zip Co Ltd (ASX: Z1P) releases an acquisition and capital raising update. There is speculation that Zip Co has identified a business to acquire that will allow it to expand into the United States and take on Afterpay in this key market.

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    James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.

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